9911796707
TMI Blog2022 (3) TMI 173X X X X Extracts X X X X X X X X Extracts X X X X ..... ppeal Centre has erred in confirming the same. The impugned order as confirmed being bad in law is required to be quashed. 2.1 In any case the learned Assessing Officer had erred in disallowing the late payment of PF/ESI, the disallowance being against the law, the additions made by AO was bad in law and CIT(A) National Faceless Appeal Centre has erred in confirming the same. 2.2 The lower authorities have not properly appreciated the facts of the case and law applicable. On proper appreciation of facts and applicable law it will be clear that the late payment of PF/ESI is allowable. 3. In view of the above and on other grounds to be adduced at the time of hearing, it is requested that the impugned order as confirmed by CIT(A) Nationa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is entitled to deduction u/s. 43B of the I.T. Act, if the same is paid prior to due date of filing of return of income u/s. 139(1) of the Act. It was further held that the amendment to section 36(1)(va) and 43B of the I.T. Act by Finance Act, 2021 is clarificatory and has got retrospective operation. 5. Aggrieved, assessee has filed this appeal before the Tribunal. The learned AR submitted that an identical issue was decided in favour of the assessee by the Tribunal in the case of M/s. Shakuntala Agarbathi Company Vs. DICT in ITA No. 385/Bang/2021 (order dated 21.10.2021). 6. The learned Departmental Representative supported the orders of the Income Tax Authorities. 7. We have heard the rival submissions and perused the material on reco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The Hon'ble High Court was considering following substantial question of law:- "Whether in law, the Tribunal was justified in affirming the finding of Assessing Officer in denying the appellant's claim of deductions of the employees contribution to PF/ESI alleging that the payment was not made by the appellant in accordance with the provisions u/s. 36[1][va] of the I.T. Act?" 7.1 In deciding the above substantial question of law, the Hon'ble High Court rendered the following findings:- "20. Paragraph-38 of the PF Scheme provides for Mode of payment of contributions. As provided in sub para (1), the employer shall, before paying the member, his wages, deduct his contribution from his wages and deposit the same together with ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re. The Hon'ble Supreme Court in the recent judgment in the case of M.M. Aqua Technologies Limited v. CIT reported in (2021) 436 ITR 582 (SC) had held that retrospective provision in a taxing Act which is "for the removal of doubts" cannot be presumed to be retrospective, if it alters or changes the law as it earlier stood (page 597). In this case, in view of the judgment of the Hon'ble jurisdictional High Court in the case of Essae Teraoka (P.) Ltd. v. DCIT (supra) the assessee would have been entitled to deduction of employees' contribution to ESI, if the payment was made prior to due date of filing of the return of income u/s. 139(1) of the I.T. Act. Therefore, the amendment brought about by the Finance Act, 2021 to section 3 ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
